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NZ shares fall but Kathmandu climbs high

NZ Newswire logoNZ Newswire 4/05/2017 Jonathan Underhill

Kathmandu gained after the outdoor clothing chain reported an uplift in third-quarter sales. © Getty Images Kathmandu gained after the outdoor clothing chain reported an uplift in third-quarter sales. New Zealand shares fell on Thursday, led by companies often held for their relatively attractive yields including Summerset Group, Ryman Healthcare and property investors.

Kathmandu gained after the outdoor clothing chain reported an uplift in third-quarter sales.

The S&P/NZX 50 Index fell 27.43 points, or 0.4 per cent, to 7378.41. Within the index, 27 stocks fell, 15 gained and eight were unchanged. Turnover was $125 million.

Summerset led the index lower, falling 2.2 per cent to $4.99, rival retirement village operator Ryman dropped 1.4 per cent to $8.53 and Metlifecare fell 1.1 per cent to $5.63.

Some property companies, which are also held for their appealing dividend yield, extended Wednesday's declines.

Argosy Property fell 1 per cent to 99 cents, Vital Healthcare Property Trust dropped 0.9 per cent to $2.18 and Stride property declined 0.6 per cent to $1.72.

"Yield stocks have been coming off the boil generally this year," said Greg Smith, head of research at Fat Prophets in Auckland.

"The reality is interest rates are going up but possibly in the near-term not as fast as people think. It is the same story in the US as well. The Fed kept interest rates on hold this week. Interest rates are going up but they're not going to rush up."

Comvita, the honey products company making strong sales in China, fell 1.4 per cent to $6.90.

Kathmandu was the biggest gainer on the index, rising about 5 per cent to $2.12 after reporting a 9.3 per cent gain in third-quarter sales, which the outdoor equipment chain said was due to new product lines and better promotions.

Vector rose 0.6 per cent to $3.29 after the company said it is starting a full roll-out of software that draws on artificial intelligence and machine-to-machine connectivity to manage its network.

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